Considering Purchasing in Resale Market

[Disney Mom Dani]

We are thinking of purchasing DVC in the resale market (& not signing the new direct contract we just received)... but we have no idea how to go about this or where to look.

Any suggestions?

Also, if we took this method, would financing similar to Disney's be available? (10 years, receiving a 1098, etc)

 

[dmunsil]

I just bought from The Timeshare Store (http://www.dvc-resales.com), the sponsor of this sub-board. They've been really great to work with. My sister bought from them as well. There are a couple of other recommended brokers that are listed in a sticky at the top of the topic list:

Fidelity Resales: http://fidelityresales.com
DVCByResale: http://www.dvcbyresale.com

Apparently Fidelity is the place that Disney sends people when owners ask Disney how they can sell their membership, so Fidelity tends to have a lot of listings. They can get really bogged down and some folks have reported having difficulty getting timely responses to email queries, but many people have bought from them successfully.

The basic advice I got that helped me was:

- Don't be in a rush. There are new listings all the time. Wait for a listing that meets your needs.
- Try to avoid "stripped" listings where the seller has already used most or all of their 2013 points (or heaven forbid has already borrowed their 2014 points). Prefer "loaded" listings where they still have 2012 points (or even maybe banked 2011 points).
- Don't get too hung up on price; even if you pay "premium" resale price you're getting a big discount over buying direct. And in the current market, good contracts are selling quickly.

Keep in mind that resale moves much slower than buying direct. You have to make the offer, have it accepted (which for most brokers is automatic if you offer the listed price), and then do the paperwork, wait 21-30 days for Disney to decide whether they will exercise ROFR, then send the money, wait for closing and filing the new deed, and then wait for Disney to actually send you the membership packet with your ID# and so forth before you can actually book a trip. The rule of thumb is 2 months from the time you make the offer to when you can actually reserve. It might be less than that, but not a lot less. It shouldn't be a lot more, though.

ROFR is Right of First Refusal. Disney reserves the right to match any bona fide offer for a DVC contract. They get 30 days from the time the offer is submitted to them to exercise that right. They don't usually do it, and when they do it tends to be on the lower-priced contracts. The Timeshare Store, for example, said that of the last 35 contracts they'd sold, 5 had been ROFR'ed by Disney, and this has been an unusually high-ROFR time period.

If you can be patient, you definitely save a lot of money, and you can buy at the resort you want, rather than just choosing Animal Kingdom or Aulani (or Grand Floridian once it opens to everyone).

Oh, and on financing we didn't do it because we were able to scrape together the cash. But I'm pretty sure the Timeshare Store can help arrange financing, or you can check with your bank or credit union and see what they offer, if anything.

 

[Disney Mom Dani]

Thanks for the help.

 

[lovin'fl]

And everything is negotiable...price, closing costs and annual dues. You don't have to offer asking/full price. Good luck in your hunt for a resale contract.

 

[nalajms]

And everything is negotiable...price, closing costs and annual dues. You don't have to offer asking/full price.

Everything is negotiable means that when placing an offer you state the price per point, who's paying closing costs and who's paying this year's dues.

That was something I didn't pickup when I researched. Good luck!

 

[Kidanifan08]

One thing to consider as you debate your home resort is your ability to plan in advance. If you typically cannot plan a vacation more than 6 months out, then the home booking advantage is a non-issue and you are better off just getting points at the most affordable resort on the resale market, which currently is SSR, based on resale prices and MF's.

If you can book 7-11 months in advance, then your home resort becomes more important, particularly if there is a specific resort or room type you are looking for. For example, if you want value rooms or concierge at AKV, you almost have to own there and book in the home booking window to get those. Theme park and standard views at BLT are difficult for non-owners to get, so owning there would be important if you desire those rooms.

Also consider the expiration date of the resorts. Currently, BWV, BCV, VWL and some OKW contracts expire in 2042. SSR is 2054 and AKV 2057, with BLT expiring in 2061.

Good luck hunting for that perfect contract!

 

[Disney Mom Dani]

Does anyone know the answer to the financing question?

 

[nalajms]

Does anyone know the answer to the financing question?

This is what The Timeshare Store offers (it's at the end of their weekly emails).

TimeShareLending.net offers financing for Marriott, Hilton, Hyatt, Disney, Starwood and Season only. Funding available in all US states.
http://www.timesharelending.net/

Interest rate as low as 12.9% - Subject to change.
Terms up to 120 months.
No prepayment penalty for loans over 12 months.
No points.
Minimum loan amount $5,000.
Maximum loan amount $250,000.

Soft Qualifier:
Minimal personal information required. No credit report is run. If you want
to know if you qualify for a loan and for what amount prior to submitting a
full credit application, fill out a short form and you will have an answer
within 24 hours. NO OBLIGATION.

Credit Application:
When you agree this loan is for you, complete the credit application and
submit it. NO OBLIGATION.

Manual Application Form:
Credit application, Hard copy, available for printing

Some of our clients have also used or applied for a Home Equity Loan or Line of Credit. The interest rates for these types of loans are at 3.25% -4.25% and the interest is tax deductible since it is considered a mortgage.

If financing is needed I hope the options above help give you some ideas.

 

[chalee94]

Does anyone know the answer to the financing question?

1) there is one resale lender that writes up the contract such that the interest is deductible (depending on your personal circumstances) - it is possible...

http://www.dvc-resales.com/faq.htm

IS FINANCING AVAILABLE?

TimeShareLending.net offers financing for Marriott, Hilton, Hyatt, Disney, Starwood and Season only. Interest rate as low as 12.9% (subject to change), Terms up to 120 months, no prepayment penalty for loans over 12 months, no points, minimum loan amount $5,000, maximum loan amount $250,000. Some of our clients have also used or applied for a Home Equity Loan or Line of Credit. The interest rates for these types of loans are at 3.25%-4.25% and the interest is tax deductible since it is considered a mortgage. If financing is needed we hope the options above help give you some ideas.

2) it is easier to organize your own financing. you cannot generally deduct the interest but you can often get lower interest rates. if you are willing to put your house at risk over a timeshare, you can use a home equity loan.

most lenders will not finance a timeshare as timeshare values have a history of collapsing...something you might want to consider as well. DVC has held up better than most but there is always a risk.

 

[Disney Mom Dani]

What is this Fidelity thing that everyone is talking about?

 

[vicki_c]

What is this Fidelity thing that everyone is talking about?

Fidelity is a company that does DVC resales.

 

[Disney Mom Dani]

Does timesharelending 1098 you like Disney does? Also, do they keep it off your credit like Disney?

 

[ELMC]

Does anyone know the answer to the financing question?

Financing is available for both direct and resale purchase. Financing is easier through Disney than it is from an outside company. But in order to get Disney financing you have to pay Disney prices, which are outrageous compared to the prices you can get by paying resale. You have a lot of questions, and that's great, but there is also a lot you should learn about what you are about to get into. I would recommend not signing the contracts and taking some time to learn about DVC, direct, resales, etc. before moving forward. One caveat, financing a luxury purchase such as a timeshare is not considered to be a wise financial move. It might be in your best interests to try to figure out a plan that gets you a DVC contract without financing. Good luck.

 

[Disney Mom Dani]

Financing is available for both direct and resale purchase. Financing is easier through Disney than it is from an outside company. But in order to get Disney financing you have to pay Disney prices, which are outrageous compared to the prices you can get by paying resale. You have a lot of questions, and that's great, but there is also a lot you should learn about what you are about to get into. I would recommend not signing the contracts and taking some time to learn about DVC, direct, resales, etc. before moving forward. One caveat, financing a luxury purchase such as a timeshare is not considered to be a wise financial move. It might be in your best interests to try to figure out a plan that gets you a DVC contract without financing. Good luck.

I appreciate your insight, but I'm on this site for the purpose of doing my research before signing anything. I know you're trying to help, but I just don't really appreciate being told how to handle my finances.

 

[ELMC]

I appreciate your insight, but I'm on this site for the purpose of doing my research before signing anything. I know you're trying to help, but I just don't really appreciate being told how to handle my finances.

With all due respect, I don't think that's what I was doing at all. You asked about financing and I feel that it is fair game to share as much as I know about financing, including the potential pitfalls. There are problematic situations that you can get into when financing a timeshare, specifically if you purchase direct. You asked about financing and I felt that commenting about that was within the scope of your question.

As an aside, there are many people who read these forums who never ask questions or even post. I feel that it's important to consider them as well when answering questions here on the DIS. I am sorry that you feel that I was telling you how to manage your money, as that was not my intent. But I can't help but feel that this falls into the category where someone asks a question and then gets upset when they don't like the answer they receive.

 

[Disney Mom Dani]

With all due respect, I don't think that's what I was doing at all. You asked about financing and I feel that it is fair game to share as much as I know about financing, including the potential pitfalls. There are problematic situations that you can get into when financing a timeshare, specifically if you purchase direct. You asked about financing and I felt that commenting about that was within the scope of your question.

As an aside, there are many people who read these forums who never ask questions or even post. I feel that it's important to consider them as well when answering questions here on the DIS. I am sorry that you feel that I was telling you how to manage your money, as that was not my intent. But I can't help but feel that this falls into the category where someone asks a question and then gets upset when they don't like the answer they receive.

Okay. I can see that you had good intentions, and how you felt you were being appropriate. When you've posted on both of my only 2 threads (saying similar comments) I think that I was just feeling chastised by a fatherly figure talking to a dumb kid. I appreciate your advice though. Sometimes I let my pride get the best of me. I apologize.

 

[ELMC]

Okay. I can see that you had good intentions, and how you felt you were being appropriate.

What I'm reading here is that you feel like I wasn't. But I might be wrong about that. Either way,

When you've posted on both of my only 2 threads (saying similar comments) I think that I was just feeling chastised by a fatherly figure talking to a dumb kid. I appreciate your advice though. Sometimes I let my pride get the best of me. I apologize.

Thanks, I'm glad we're understanding each other. I'm certainly not here to chastise anyone, but sometimes it's difficult to say things that people might not want to hear. Most of the time they're worth saying anyway for the fact that they might help either the OP or the lurkers reading these threads for information. I wouldn't read too much into the fact that I posted on your only two threads. I tend to post on the same types of threads, and unless you are a frequent poster, most times I am not really cognizant of the person I am replying to, only the question. Typically threads I reply to include explaining the workings of the contract, direct vs. resale, purchase and exit strategies, price fluctuations, or situations that need clarification. I didn't even realize that I had posted in two of your threads until you mentioned something.

Going back, it does seem like I'm saying "you need to learn more about this" and I can see how that could be bothersome. But the fact is that we've all been there, and many of us don't know what we don't know. Although it hurts the ego a little bit, frequently it's helpful to hear that. I try to be as sensitive as I can, but if the choice is between ruffling a few feathers by telling what I perceive to be the truth or sugar coating my feelings to the point of not being helpful, I'll prefer the former. I'm sure there are times where others would prefer I chose the latter.

Speaking specifically to this situation, I would not finance a direct purchase of AKV at the current prices because in my opinion it is just too risky. There is very little recourse should you need/choose to sell or have any appreciable changes in your vacation habits. But that doesn't mean that people who do this are dumb. It simply means that they either have a higher risk tolerance or they weren't aware of the pitfalls, which I try to point out. In the end, my only concern is that you are making an informed decision and that I helped provide information where applicable. It's not my place to judge that decision. Good luck with however you choose to proceed.

 

[kreckl]

Chiming in....
As a current "lurker" ( because I am just now considering adding on some points- don't want to finance- and don't have any idea where to begin) I can say I appreciate everyone's info. It is very true that many people get info BEFORE they ask a question, because if the information is already here then I can find it and not ask something that's already been explained!
Sometimes emails/postings just come across wrong, or questionable. From the outside looking in, it didn't sound negative or disrespectful at all. And I thank you for taking the time to post.

 

[goofy4tink]

While I do understand that financing through Disney, when buying DVC, is probably not the best idea for a lot of people, it did work out just fine for us. Yes, we paid top dollar. We knew that going in. We wanted to get to know what we were dealing with before thinking about buying points through someone other than Disney.
Now, I'm thinking about adding points in the near future...probably either Kidani or SSR. And I'll be buying them through someone other than Disney. And I will most likely end up spending quite a bit less that way. But, sometimes it makes sense finance through Disney...maybe not financial sense but in other ways.

 

[rusafee1183]

Does anyone know the answer to the financing question?

We are currently financing and purchasing resale for our 2nd contract. I was unsure where to start as well, so I found a contract I was interested in, contacted the broker immediately and asked them where to go from there. They pointed me in the direction of a company that they have worked with and recommended and I contacted them same day. They have both been great, and are working with me (and together) to see that the payments are what we are comfortable with and work with our (very small ) budget.

Although, it is working out - it was definitely a whirlwind of trying to contact this person and then that person all while trying to get approved, and trying not to lose the contract.

It's smart you are trying to find out about financing before hand. Good luck!

While I do understand that financing through Disney, when buying DVC, is probably not the best idea for a lot of people, it did work out just fine for us. Yes, we paid top dollar. We knew that going in. We wanted to get to know what we were dealing with before thinking about buying points through someone other than Disney.
Now, I'm thinking about adding points in the near future...probably either Kidani or SSR. And I'll be buying them through someone other than Disney. And I will most likely end up spending quite a bit less that way. But, sometimes it makes sense finance through Disney...maybe not financial sense but in other ways.

We purchased direct, and financed our first contract for 11%. We signed the papers for 10 years of payments, but I knew full well I would never let that happen. As soon as we got home, I took out an 8% personal loan through my bank and consolidated all of our higher interest debt (DVC, Credit Cards) to a 5 year term.

We paid a lot more going direct through Disney and financing than we would have if we had the cash on hand and purchased re-sale, but to be honest... 1) I don't have 10,000+ that I can just give away and 2) Disney made it really easy. I knew about the resale market, and I knew it cost less - but I didn't TRULY understand it all until now.

Now, we are in the middle of ROFR on a resale contract and I am really happy to be paying barely over HALF of what my other contract cost. I'll likely never buy direct again, but I am OK with the fact that we started that way because otherwise I probably would have continued to not understand DVC enough, and would have never bought in at all.

I am in a situation where I can genuinely see the plusses and minuses for both situations.